Content revenue and profit rose, but the consolidated operating loss widened

For the nine months ended 30 September 2026, consolidated revenue was ¥771 million, up 27.9% from ¥603 million in the same period of the previous year. However, operating results deteriorated from an operating loss of ¥42 million in the same period of the previous year to an operating loss of ¥105 million. Revenue growth and operating profitability are moving in opposite directions, making it important that higher revenue has not translated directly into company-wide profit.

As the reported segments have been changed to a single Content business segment, the Content business revenue of ¥736 million and segment profit of ¥182 million are reference figures calculated on a basis similar to the previous presentation. Reference revenue represents approximately 95.5% of consolidated revenue, while segment profit of ¥182 million and the consolidated operating loss of ¥105 million are measured at different aggregation levels. In the next results release, it will be necessary to assess how fully the company explains the difference between business profit and head-office costs, personnel expenses and litigation-related expenses.

By region, revenue for the nine months was ¥673.205 million in Japan, ¥10.424 million in Indonesia, ¥72.882 million in Vietnam and ¥15.365 million in Thailand. In the same period of the previous year, revenue was ¥547.626 million in Japan, ¥2.435 million in Indonesia, ¥31.392 million in Vietnam and ¥21.955 million in Thailand. Revenue increased in Japan, Indonesia and Vietnam, while declining in Thailand. Overseas expansion contributed to higher company-wide revenue, but profit contributions by country have not been disclosed.

The company describes order conditions as solid and royalty income as progressing smoothly, but it has not disclosed order intake, order backlog, the amount of royalty income or the breakdown of higher fixed costs. In the full-year results, it will be important to verify on a monetary basis whether Content business revenue growth continued in the fourth quarter, whether the segment profit margin improved, and how much fixed costs and litigation-related expenses depressed operating results.